• Lord Abbett Affiliated Fund v. Navient Corp.

    Publication Date: 2019-02-20
    Practice Area: Securities Litigation
    Industry: Financial Services and Banking | Investments and Investment Advisory
    Court: U.S. District Court of Delaware
    Judge: District Judge Noreika
    Attorneys: For plaintiff: Patrick F. Morris, Karen L. Morris and R. Michael Lindsey, Morris and Morris LLC, Wilmington, DE; Ste-ven E. Fineman, Daniel P. Chiplock, Michael J. Miarmi, Richard M. Heimann, Bruce W. Leppla and Sha-ron M. Lee, Liefe Cabraser Heimann & Bernstein, New York, NY for plaintiffs.
    for defendant: Kelly E. Farnan, Richards Layton & Finger, P.A., Wilmington, DE; Peter A. Wald, Abid R. Qureshi, Christopher S. Turner and Christopher R. Harris, Latham & Watkins LLP, Washington, DC for Navient Corp. and individual defendants. Kevin G. Abrams and John M. Seaman, Abrams & Bayliss LLP, Wil-mington, DE; Adam S. Hakki, Daniel C. Lewis and Anthony D. Marinello of Shearman & Sterling LLP for underwriter defendants.

    Case Number: D68465

    Plaintiffs adequately stated claims for securities violations, except with regard to statements that were mere puffery and where plaintiffs failed to demonstrate scienter.

  • Sheldon v. Pinto Tech. Ventures, L.P.

    Publication Date: 2019-02-06
    Practice Area: Corporate Governance | Securities Litigation
    Industry: Investments and Investment Advisory
    Court: Court of Chancery
    Judge: Vice Chancellor Zurn
    Attorneys: For plaintiff: Thad J. Bracegirdle and Scott B. Czerwonka, Wilks, Lukoff & Bracegirdle, LLC, Wilmington, DE; Jeff Joyce, Joyce & McFarland LLP, Houston, TX for plaintiffs.
    for defendant: Brian C. Ralston and Jacqueline A. Rogers, Potter Anderson Corroon LLP, Wilmington, DE; Danny Da-vid and Rebecca Huddle, Baker Botts LLP, Houston, TX for defendants Terry and Walker. Bruce E. Jameson and Samuel L. Closic, Prickett, Jones & Elliott, P.A., Wilmington, DE; B. Russell Horton, George Brothers Kincaid & Horton, L.L.P., Austin, TX for Pinto Tech., RiverVest and Bay City Capital defendants.

    Case Number: D68451

    Defendants' successful effort to enforce a forum selection clause in the court of another state did not preclude them from arguing that a shareholder action was derivative.

  • Applied Energetics, Inc. v. Farley

    Publication Date: 2019-02-06
    Practice Area: Corporate Entities | Securities Litigation
    Industry: Investments and Investment Advisory
    Court: Court of Chancery
    Judge: Vice Chancellor Montgomery-Reeves
    Attorneys: For plaintiff: Jason C. Jowers, Meghan A. Adams, and Ian D. McCauley, Morris James LLP, Wilmington, DE; David A. Robinson, Benjamin P. Pugh, and Michael S. Wilde, Enterprise Counsel Group, a Law Corporation, Irvine, CA for plaintiff.
    for defendant: Kathleen M. Miller and Clarissa R. Chenoweth, Smith, Katzenstein & Jenkins LLP, Wilmington, DE; Ryan J. Whalen, Gusrae Kaplan Nusbaum PLLC, New York, NY for defendants.

    Case Number: D68446

    Preliminary injunction restricting transfer of stock allegedly issued in a director's breach of fiduciary duty was granted where company was likely to prove director lacked authority to issue the stock and director issued it at an unreasonably low price.

  • Delaware Law Weekly

    Del. Federal Judge Allows Investor Claims to Proceed Against Navient

    January 30, 2019

    A Delaware federal judge ruled Tuesday that Navient Corp., one of that nation's largest servicers of student loans, must face claims that it had pumped up its stock price by hiding serious problems with its loan portfolio and other risks from investors.

  • AR Capital, LLC v. XL Specialty Ins. Co.

    Publication Date: 2018-12-26
    Practice Area: Insurance Law | REITS | Securities Litigation
    Industry: Consulting | Insurance | Investments and Investment Advisory
    Court: Delaware Superior Court
    Judge: Judge Carpenter
    Attorneys: For plaintiff: Jennifer C. Wasson and Carla M. Jones, Potter Anderson & Corroon LLP, Wilmington, DE; Robin L. Cohen and Natasha Romagnoli, McKool Smith, PC, New York, NY for plaintiff
    for defendant: Stephen B. Brauerman and Sara E. Bussiere, Bayard, P.A., Wilmington, DE; Joseph D. Jean, Alexander D. Hardiman, and Benjamin D. Tievsky, Pillsbury Winthrop Shaw Pittman LLP, New York, NY for intervenor.

    Case Number: D68398

    Investment manager entitled to coverage under client's policy where endorsement on policy expressly defined manager under the definition of "company" entitled to coverage for securities claims.

  • In re Tangoe, Inc. Stockholders Litig.

    Publication Date: 2018-12-05
    Practice Area: Corporate Governance | Securities Litigation
    Industry: Investments and Investment Advisory | Technology Media and Telecom
    Court: Court of Chancery
    Judge: Vice Chancellor Slights
    Attorneys: For plaintiff: Kurt M. Heyman and Melissa N. Donimirski, Heyman Enerio Gattuso & Hirzel LLP, Wilmington, DE; Jason M. Leviton and Joel A. Fleming, Block & Leviton LLP, Boston, MA; Jeremy S. Friedman, Spencer Oster, and David F.E. Tejtel, Friedman Oster & Tejtel PLLC, New York, NY for plaintiff
    for defendant: Catherine G. Dearlove and Sarah A. Galetta, Richards, Layton & Finger, P.A., Wilmington, DE; William H. Paine, Timothy J. Perla, Peter A. Spaeth, and Alexandra C. Bourdreau, Wilmer Cutler Pickering Hale and Dorr LLP, Boston, MA for defendants.

    Case Number: D68375

    Stockholder's derivative complaint not dismissed where he adequately pled company failed to inform stockholders prior to their approval and asserted a reasonable claim for breach of duty of loyalty.

  • Busch v. Richardson

    Publication Date: 2018-11-28
    Practice Area: Corporate Entities | Deals and Transactions | Securities Litigation
    Industry: Manufacturing
    Court: Court of Chancery
    Judge: Chancellor Bouchard
    Attorneys: For plaintiff: Peter B. Andrews, Craig J. Springer, and David M. Sborz, Andrews & Springer LLC, Wilmington, DE; Jeffrey Norton and Roger A. Sachar, Newman Ferrara LLP, New York, NY; Peter Safirstein and Elizabeth S. Metcalf, Safirstein Metcalf LLP, New York, NY for plaintiff
    for defendant: Blake Rohrbacher, Kevin M. Gallagher, and John M. O'Toole, Richards, Layton & Finger, P.A., Wilmington, DE; P. Clarkson Collins, Jr., Morris James LLP, Wilmington, DE; Garrett B. Moritz and Roger S. Stronach, Ross Aronstam & Moritz LLP, Wilmington, DE for defendants.

    Case Number: D68366

    Derivative complaint arising from related-party transactions dismissed after board exercised business judgment to decline stockholder's litigation demand, where stockholder failed to plead that demand was made in reliance on company's inaccurate representations or that a majority of the directors were not disinterested or independent.

  • Wigginton v. Advance Auto Parts, Inc.

    Publication Date: 2018-11-14
    Practice Area: Class Actions | Securities Litigation
    Industry: Automotive | Legal Services | Retail
    Court: U.S. District Court of Delaware
    Judge: District Judge Noreika
    Attorneys: For plaintiff: Brian E. Farnan and Michael J. Farnan of Farnan LLP, Wilmington, DE; Phillip Kim of The Rosen Law Firm, P.A., New York, NY; Peter B. Andrews, Craig J. Springer and David M. Sborz of Andrews & Springer LLC, Wilmington, DE; Ira M. Press, David A. Bishop and Thomas E. Elrod of Kirby Mcinerney LLP, New York, NY; Jeffrey M. Gorris and Christopher P. Quinn of Friedlander & Gorris, P.A., Wilmington, DE; Danielle S. Myers of Robbins, Geller, Rudman & Dowd LLP, San Diego, CA; P. Bradford deLeeuw of Rosenthal, Monhait & Goddess, P.A.; Naumon A. Amjed, Darren J. Check and Ryan T. Degnan of Kessler Topaz Meltzer & Check, LLP, Radnor, PA, attorneys for plaintiffs
    for defendant: Samuel A. Nolen and Katharine L. Mowrey of Richards Layton & Finger, P.A.; Douglas P. Baumstein and Susan L. Grace of White & Case LLP, New York, NY, attorneys for defendants.

    Case Number: D68351

    Institutional investor with largest financial interest in putative securities fraud class action was entitled to presumption as lead plaintiff despite falling afoul of the 5-in-3 Rule due to the statutory preference for institutional investors serving as lead plaintiffs in securities class actions.

  • Corporate Counsel

    Tesla Securities Lawyer Heads to Sonder as GC

    November 13, 2018

    Amid increased SEC scrutiny of Tesla, a top securities lawyer at the automotive company has moved to a startup as GC.

  • Flood v. Synutra Int'l, Inc.

    Publication Date: 2018-10-24
    Practice Area: Corporate Governance | Mergers and Acquisitions | Securities Litigation
    Industry: Food and Beverage
    Court: Delaware Supreme Court
    Judge: Justice Strine
    Attorneys: For plaintiff: Ryan M. Ernst, Daniel P. Murray,O'Kelly Ernst & Joyce, LLC, Wilmington, DE; Donald J. Enright, Eliza-beth K. Tripodi, Levi & Korsinsky, LLP, Washington, D.C., attorneys for plaintiff
    for defendant: Matthew E. Fischer, Matthew R. Dreyfuss, Potter Anderson & Corroon LLP, Wilmington, DE; Roger A. Cooper, Rishi N. Zutshi, Vanessa C. Richardson, Hana Choi, Cleary Gottlieb Steen & Hamilton LLP, New York, NY, attorneys for defendants Synutra, Jinrong Chen, Lei Lin and Yalin Wu; William M. Laf-ferty, John P. DiTomo, Morris, Nichols, Arsht & Tunnell LLP, Wilmington, DE; Lawrence Portnoy, Re-becca L. Martin, Davis Polk & Wardwell LLP, New York, NY, for defendants Liang Zhang, Xiuqing Meng and Beams Power Investment Ltd.

    Case Number: D68329

    The business judgment rule applied, even though a controller's initial offer did not contain the required condi-tions, because he provided a second letter containing those conditions prior to any action by the special com-mittee.